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Asking for support is not easy. It's easy to forget that helping each other is a great source of enrichment for everyone involved. Those who donate will also feel more hope, connection, self-efficacy and trust.
In addition, the donation goal you set will help determine whether people are motivated to donate. Because it's not easy to set the target amount, we have developed 3 steps that you can use to easily define a realistic and motivating goal – whether you are collecting money for private individuals or for social and activist initiatives.
Important Information in Advance
There are differences between crowdfunding platforms, especially when it comes to defining goals. Before you start setting your donation goal, you should know the following about GoodCrowd.org:
- On GoodCrowd.org, you keep all donations – regardless of whether you reach, miss or exceed your goal.
- You can change your donation goal at any time.
- We want the support to reach you – or those for whom you are collecting – as quickly as possible. Donations are therefore paid out continuously. After receiving donations via the platform, the money is automatically transferred directly to your account.
- Keep in mind that there is a transaction fee per donation. Therefore, you should set the target amount a little higher than your actual goal.
Step 1: Determine Exactly How Much You Need
Get a clear picture of the amount you need. Think carefully about what costs need to be covered to achieve the campaign's goal and how much they will be.
Tip: A little research in advance saves time and helps build trust with donors. Whether it's medical expenses, a social project or another urgent need, calculate exactly what is needed and state it in the campaign text. For example:
Tip: A little research in advance saves time and helps build trust with donors. Whether it's medical expenses, a social project or another urgent need, calculate exactly what is needed and state it in the campaign text. For example:
- What does it cost to renovate the apartment so that it is barrier-free? What exactly needs to be changed?
- How much will it cost to organise the demonstration?
- What are the exact costs for your friend's medical treatment? Are there any travel costs?
Then add another 3%, because we have to deduct 2.7% + €0.35 / donation to cover the costs of the payment service providers.
Step 2: Start with the Most Urgent Expenses
If the total cost seems very high (e.g. over €50,000), you should set an initial lower donation target that covers the most critical and urgent expenses for the time being. This makes the goal still achievable and therefore motivating, especially for your first donors.
If the need has to be met in several stages, you can also make these stages transparent in the text from the outset and initially set the donation target as it is needed for the first stage. For example, to get an accessible car, you first have to buy a suitable car and then convert it to be accessible.
Later on, once you and your community of donors have achieved a large part of the first goal, you can adjust the target amount. That way, the overall goal won't seem so unattainable!
On the contrary: If you have already achieved so much together, it is motivating to share the campaign again and tell people about it – or to mobilise even more people to donate with special offers and press work. Together, you will eventually reach the overall goal and cover all the necessary expenses.
If the need has to be met in several stages, you can also make these stages transparent in the text from the outset and initially set the donation target as it is needed for the first stage. For example, to get an accessible car, you first have to buy a suitable car and then convert it to be accessible.
Later on, once you and your community of donors have achieved a large part of the first goal, you can adjust the target amount. That way, the overall goal won't seem so unattainable!
On the contrary: If you have already achieved so much together, it is motivating to share the campaign again and tell people about it – or to mobilise even more people to donate with special offers and press work. Together, you will eventually reach the overall goal and cover all the necessary expenses.
Step 3: Plan for the Possibility that You Will Exceed the Donation Goal
If you reach your crowdfunding goal quickly and more donations come in, you can think about what else you can achieve with further donations. Perhaps the fundraiser can be used to cover additional specific costs to provide even more relief for you or the people for whom the money is intended.
Alternatively, you can donate the remaining money to a non-profit organisation that works on a similar topic. If more money is collected than needed, write in your campaign description what the remaining money will be used for. This way, there will be no problems with transparency regarding the use of the money later on.
Set your crowdfunding goal now so that your supporters can make their first donations.
Alternatively, you can donate the remaining money to a non-profit organisation that works on a similar topic. If more money is collected than needed, write in your campaign description what the remaining money will be used for. This way, there will be no problems with transparency regarding the use of the money later on.
Set your crowdfunding goal now so that your supporters can make their first donations.
Frequently Asked Questions about Setting the Donation Goal
1. How Do I Set My Fundraising Goal?
When setting your fundraising goal, one thing is especially important: that you are transparent about how the money will be used. Describe in detail how much money is needed for what and what the donations will ultimately achieve.
2. Can I Increase the Fundraising Goal?
You can change the crowdfunding goal and the target amount of your campaign on GoodCrowd.org at any time. You can find more about this in our blog article about increasing your goal.
3. Do I Receive the Full Amount Donated or Are Fees Deducted?
We have to cover the costs of the payment service providers to ensure that donations are processed securely. Therefore, a little less than the full amount of the donations will be transferred to your account. You will receive a detailed statement of fees each month. You can find all the details about the processing fees here.
4. Does GoodCrowd.org also Pay Out the Money if I Don't Reach My Donation Goal?
On GoodCrowd.org, you keep all donations – regardless of whether you reach, miss or exceed your donation goal. This means that every contribution helps and is paid out directly to your account!
5. How Long Does Crowdfunding Run on GoodCrowd.org?
Crowdfunding campaigns on GoodCrowd.org have no fixed duration or deadline. You can mobilise for donations until you reach your goal or until you no longer receive donations. You can also leave it open and reactivate your community of supporters at a later point in time.
6. Do I Have to Pay Taxes on the Money I Receive through Crowdfunding?
Payments made via GoodCrowd.org are generally not tax-deductible donations in the legal sense, but gifts without consideration. There is a tax-free allowance for gifts. After that, gift tax applies. You can find more details here.
7. Are the Expenses Financed by Crowdfunding Checked by GoodCrowd.org?
As the campaign manager, you are responsible for ensuring that the funds are used exclusively for the purpose stated in the campaign description. Please note that you may have to provide us with evidence of how the funds are used. Therefore, please keep the receipts in a safe place. The higher the donation target, the more important it is to be able to demonstrate how the donations are used.
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